1. Financing a start-up company After the stock market crash in 1929, the Securities and Exchange Commission (SEC) was established to protect investors from fraudulent investments and to regulate the securities industry Based on your understanding of SEC regulations, which of the following statements are true? Check all that apply. Companies are liable for all of the information presented in the prospectus. The SEC has jurisdiction over interstate public offerings of any amount. The SEC does not allow companies to specify or limit which groups or types of investors to whom a company can issue securities The SEC requires that all marketing and promotional material be distributed, along with the prospectus, to all prospective investors. In most public offerings, investors are classified based on their profiles. Individuals of high net worth, institutional investors, senior executives, and directors of companies are referred to as nonaccredited investors accredited investors A company has to grow to a certain level before it can successfully raise capital by selling its stock to the public. At different stages, a company has different financing needs; it raises capital by reaching out to different kinds of investors